Chainlink Forms A Daily Bullish Pattern – Top Analyst Eyes Breakout To $30
Chainlink has faced significant selling pressure recently, with its local supply area falling by 22% to test critical demand near the $20 mark. Despite the decline, sentiment surrounding LINK remains positive as analysts and investors anticipate a strong recovery. Many see this pullback as a strategic opportunity to accumulate, with the potential for huge gains later in the year.
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Top analyst Carl Runefelt has shared a compelling technical analysis of X, highlighting that LINK is currently trading within a falling wedge pattern on the daily time frame. A falling wedge is often viewed as a bullish reversal pattern, and a breakout of falling resistance could signal the start of a sharp move higher. Runefelt said that once LINK successfully breaks out of this pattern, it will lay the foundation for a massive rebound, potentially pushing LINK to new highs.
With Chainlink’s strong foundation With the growing popularity of decentralized finance (DeFi) and the blockchain ecosystem, the current price action can serve as a springboard for substantial gains. However, the immediate challenge is to regain lost ground and break through wedge resistance. As the market awaits confirmation of a breakout, LINK’s direction over the next few days will be critical in shaping its long-term trend.
Chainlink expected to recover after recent decline
Chainlink has solidified its position as one of the most promising altcoins of this market cycle, standing out in the rapidly growing real-world asset (RWA) space. Its innovations and partnerships are driving wider adoption, especially its groundbreaking collaboration with XRP. The partnership aims to enhance the functionality and adoption of Ripple USD (RLUSD), a stablecoin designed for decentralized finance (DeFi), making Chainlink a key player in the ecosystem.
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Renowned investor and analyst Carl Runefelt recently shared a technical analysis of X, highlighting that Chainlink is trading within a falling wedge pattern on the daily time frame. This bullish reversal pattern shows that there is huge upside potential once LINK breaks above descending resistance. Runefelt set an initial price target of $30.94 following an expected breakout, suggesting LINK could be starting a larger bull trend.
In addition to its technical setup, Chainlink’s strong fundamentals, including its leadership in Oracle solutions and its growing influence in the DeFi space, make it a top contender in this bull cycle. If LINK follows the bullish thesis laid out by Runefelt, the $30.94 target may just mark the beginning of a larger rally as altcoins continue to gain traction and push the boundaries of decentralized innovation.
Price Analysis: Key support holds at $20
Chainlink (LINK) is trading at $20, a key level that represents an area of strong weekly demand. Analysts and investors are watching this price point closely as it has the potential to determine the short-term trajectory of LINK price action.
Staying above this key support level will be crucial to sustaining the bullish momentum. If LINK can sustain the $20 level, it could set the stage for a rally toward the $25 mark. A break above this resistance level could trigger a broader rally, potentially pushing LINK to multi-year highs as market sentiment shifts in favor of LINK.
However, the stakes are high. A break below the $20 demand zone could lead to a deeper correction, with the price potentially revisiting $16 levels. The move could shake investor confidence in the short term, but could also create new accumulation opportunities as LINK establishes new support.
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With the market in a volatile phase, the next few days will be crucial for LINK. Whether it holds $20 or tests lower levels, its ability to regain and sustain momentum above key resistance will determine the strength of the next leg up in its bullish cycle. Investors remain cautiously optimistic.
Featured image from Dall-E, chart from TradingView
